Feakes & Co Solicitors
Monmouthshire NP16 5UH
Tel: 01291 639280
Fax: 01291 606076
Renewing A Commercial Tenancy
A tenant can usually renew a lease at the end of the term, if they wish to do so, under the terms of the Landlord and Tenant Act 1954. Unless the landlord takes some action, the terms of the new lease including the rent will be the same as the old lease. (It is possible - but complicated - to contract out of the provisions of the 1954 Act.)
What Steps Should A Tenant Take?
A tenant who wishes to renew the lease should send written notice (called a Section 26 notice) to their landlord at least six months prior to the end of the lease, stating that they wish to stay in the property after the lease ends. They should suggest the terms of the new lease, such as the rent and length of term.
The landlord has two months after receiving the Section 26 notice to say whether or not they agree to the tenant’s request. In certain circumstances, the landlord is entitled to refuse to grant you a new lease and your lawyer can advise if you have a right to compensation.
What Should A Landlord Do?
The landlord can send a notice (known as a Section 25 notice) stating that the lease will terminate at the end date stated in the lease. The notice should be sent at least six months prior to the end of the lease. If the landlord is willing to offer a new lease, they can set out the proposed terms in the notice.
If the tenant does not apply to the court before the date specified in the Section 25 notice, they will lose their protection under the Act, and the landlord will be entitled to possession on the date specified in the notice. The deadline can be extended by written agreement.
If terms of a new lease are not agreed between the parties, either party can apply to the court to decide them.
It is important to take advice about a particular set of circumstances. Call us today to discuss your situation and how we can help.
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